2017 Year-End Planning Checklist

Transcription

1 2017 Year-End Planning Checklist The experienced professionals at Wells Fargo Private Bank can help you plan with confidence. To discuss which year-end planning actions may be right for you, contact your relationship manager or call

2 OCTOBER Meet with your relationship manager to revisit your financial goals and discuss life changes that have occurred this year. Review your investment portfolio to make sure your asset allocation aligns with your goals. Discuss strategies for managing the impact of income taxes and the 3.8 percent surtax on unearned net investment income with your financial professional and tax advisors. Determine whether the 0, 15, or 20 percent capital gains tax rate will apply to you or other family members. Remember that the trade date (the date the order was executed), not the settlement date, should be used to determine the holding period for your securities and recognition of any gain or loss in most situations. Consider funding a Flexible Spending Account (FSA) or Health Savings Account (HSA) during your employer s annual benefits enrollment period. Consider establishing a SIMPLE IRA/safe harbor 401(k), if applicable. Deadline: Oct. 1. Consider recharacterizing a 2016 Roth IRA conversion (if you filed an extension). Deadline: Oct. 16 File your 2016 federal individual income tax return (if subject to automatic extension). Deadline: Oct. 16 Review your Medicare Part D choices if you are on Medicare. Enrollment window: Oct. 15 Dec. 7.

3 NOVEMBER Speak with your relationship manager to create a gifting plan, evaluate your current company and Social Security benefits, and review your beneficiary designations. Develop a plan to complete charitable and family member gifts by year-end. If you re considering a contribution to a gift fund, the account must be open and the deposit made before Dec. 31 to qualify as a 2017 contribution. Review your beneficiary designations and make any necessary adjustments. This is especially important if you had any significant life events this year, for example a marriage or new grandchild. If you re turning 66 or plan to retire in 2018, consult the Social Security Administration s website, to determine your Social Security benefits and how to apply. If you re approaching 65, consult to determine how and when to apply for Medicare. Confirm your current FSA balance and verify the rules under your plan for rollover of unused funds into If the rollover option is not available to you, or if your balance exceeds the permissible rollover amount, plan ahead to spend the balance on qualified health care expenses before the end of the year. If you are selling a security to realize a loss but want to maintain exposure to it in your portfolio, be mindful of the wash sale rule. Any doubling up of your position should be in place by Nov. 28 so you can still make the loss sale in 2017 without violating the wash sale rule.

4 DECEMBER All of the planning activities from these past couple months come together in December. Your Wells Fargo Private Bank team can help you meet the following important year-end deadlines.* Fully fund your 401(k) and complete any Roth IRA conversions. Take required minimum distributions (RMDs) if you reached age 70½ before RMDs from your IRA cannot be combined with RMDs from your employer plan each must be calculated and distributed separately. Complete all 2017 charitable and family gifts. Sell stocks or listed options to realize a gain or loss. Consider establishing a new profit sharing, non-safe harbor 401(k) or defined benefit plan, if applicable (calendar-year taxpayers). Consider selling shares acquired through the 2017 exercise of incentive stock options (ISOs) in disqualifying disposition to limit alternative minimum tax (AMT) exposure, if applicable. *Please note, as December 31 falls on a Sunday, the deadline for implementing many investment-related strategies to help reduce your tax bill for this year is December 29, 2017.

5 We re here to help you construct a plan that fits your life. To get started, contact your relationship manager or call Wells Fargo Private Bank and Abbot Downing, a Wells Fargo business, provide products and services through Wells Fargo Bank, N.A. and its various affiliates and subsidiaries. Wells Fargo Bank, N.A. is a bank affiliate of Wells Fargo & Company. Investment products and services are offered through Wells Fargo Advisors. Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services, LLC, Member SIPC, a registered broker-dealer and non-bank affiliate of Wells Fargo & Company. Wells Fargo & Company and its affiliates do not provide legal advice. Please consult your legal and tax advisors to determine how this information may apply to your own situation. Wells Fargo Advisors and its affiliates do not provide tax or legal advice. Whether any planned tax result is realized by you depends on the specific facts of your own situation at the time your taxes are prepared Wells Fargo Bank, N.A. All rights reserved. IHA TPB01857 ( BD) CAR